SF 2926

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/16/2023 08:35am

A bill for an act
relating to taxation; modifying the Sustainable Forest Incentive Act; allowing
claimants to lengthen the covenant; modifying provisions related to the death of
a claimant; amending Minnesota Statutes 2022, sections 290C.055; 290C.12.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 290C.055, is amended to read:

290C.055 LENGTH OF COVENANT.

(a) Claimants enrolling any land that is subject to a conservation easement funded under
section 97A.056 or a comparable permanent easement conveyed to a governmental or
nonprofit entity must enroll their land under a covenant with a minimum duration of eight
years. All other claimants may choose to enroll their land under a covenant with a minimum
duration of eight, 20, or 50 years. If the claimant requests removal of land from the program
before it has been enrolled for one-half the number of years of the covenant's duration, the
covenant remains in effect for the entire duration of the covenant from the date recorded.

(b) If land that has been enrolled for one-half the number of years of the covenant's
minimum duration or more is removed from the program for any reason, there is a waiting
period before the covenant terminates. The covenant terminates on January 1 of the fifth,
11th, or 26th calendar year for the eight-, 20-, or 50-year minimum covenant, respectively,
that begins after the date that:

(1) the commissioner receives notification from the claimant that the claimant wishes
to remove the land from the program under section 290C.10; or

(2) the date that the land is removed from the program under section 290C.11.

(c) Notwithstanding the other provisions of this section, the covenant is terminated:

(1) at the same time that the land is removed from the program due to acquisition of title
or possession for a public purpose under section 290C.10; or

(2) at the request of the claimant (i) if there is a reduction in payments due to changes
in the payment formula under section 290C.07; or (ii) if, as a result of executive action, the
amount of payment a claimant is eligible to receive under section 290C.07 is reduced or
limited.

new text begin (d) A claimant may elect to change the length of a covenant to a longer-term covenant
without penalty by providing notice to the commissioner of intent to change the length of
the covenant.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2022, section 290C.12, is amended to read:

290C.12 DEATH OF CLAIMANT.

new text begin (a) new text end Within one year after the death of the claimant, the claimant's heir, devisee, or estate
must either:

(1) notify the commissioner of election to terminate enrollment in the sustainable forest
incentive program; or

(2) make an application under this chapter to continue enrollment of the land in the
program.

new text begin (b) new text end Upon notification under new text begin new text end new text begin paragraph (a), new text end clause (1), new text begin the heir, devisee, or estate is liable
for payment to the commissioner as provided in paragraph (e). Upon payment, new text end the
commissioner shall terminate the enrollment and issue a document releasing the land from
the covenant as provided in section 290C.04, paragraph (d). deleted text begin Penalties under section 290C.11
shall not apply.
deleted text end

new text begin (c) new text end If the new text begin commissioner approves the new text end application under new text begin paragraph (a), new text end clause (2) deleted text begin is
approved deleted text end , the land is enrolled in the program without a break. new text begin The commissioner shall
inform the heir, devisee, or estate of the restrictions of the covenant required by section
290C.04 and the withdrawal procedures under section 290C.10. In order for an heir, devisee,
or estate to continue to receive payments pursuant to this chapter, the heir, devisee, or estate
must file an application and register a new forest management plan with the commissioner
of natural resources within two years from the date of the death of the claimant to remain
eligible.
new text end

new text begin (d) new text end If the commissioner does not receive notification new text begin under paragraph (a) new text end within one
year after the date of death deleted text begin , enrollment in the program shall be terminated and penalties
under section 290C.11 shall not apply deleted text end new text begin and does not receive the return of the certification
form as required by section 290C.05, then the commissioner shall terminate the enrollment
and the estate of the claimant is liable for payment to the commissioner as provided in
paragraph (e) new text end .

new text begin (e) The payment required under paragraph (b) or (d) equals the amount of payments
issued related to the enrolled tax parcel under this chapter for the number of years the land
has been bound by the covenant, or one-half the covenant length, whichever is less, plus
interest. The heir, devisee, or estate has 90 days to satisfy the payment for removal of land
from the sustainable forest incentive program under this section. If the payment is not made
within 90 days, the commissioner shall certify the amount to the county auditor for collection
as part of the general ad valorem real property taxes on the land in the following taxes
payable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end